Research Study Finds Correlation Between Mature ERM Programs and
An Average 25% Jump in Firm Value
NEW YORK (April 28, 2015) — In two new RIMS Executive Reports, titled, “Why a Mature ERM Effort is Worth the Investment,” and its companion “Testing Value Creation Through ERM Maturity” the Society and the original
study’s authors respectively comment on recent findings that support organizations’ decisions to invest in mature enterprise risk management (ERM) programs
“With key findings that indicate that organizations exhibiting mature risk management practices realize an increased valuation premium of 25%, risk professionals now have the documented support that is often necessary to gain buy-in from senior leadership,”
said Carol Fox, RIMS Director of Strategic and Enterprise Risk practice. “We hope these reports will spur greater investment by organizations in risk management staffing, enterprise-wide risk training and awareness, analysis, and other resources
to achieve higher levels of risk management maturity – and value.”
The study’s authors used data from RIMS Risk Maturity Model® to assess the correlation between mature risk programs
and organizational value. These RIMS Executive Reports discuss the attributes of a mature ERM program, how each of those attributes impacts value, as well as a summary of the researchers’ key findings.
“The free assessment offered by RIMS and LogicManager provides a logical starting place for organizations to assess where they are on the maturity continuum and take action to create value,” states Steven Minsky, CEO of LogicManager, Inc. and architect of the RIMS’ Risk Maturity Model®. “The assessment, based on guidelines set forth in the model, serves as a roadmap for improvement.”
The companion RIMS Executive Report “Testing Value Creation Through ERM Maturity” authored by
Mark Farrell of Queen’s University Management School and Dr. Ronan Gallagher of University of Edinburgh Business School, provides a more in-depth look at their findings and research methodology. The authors published their original findings in a
Journal of Risk and Insurance article “The Valuation of Enterprise Risk Management” – a wholly independent and peer-reviewed project.
Both RIMS Executive Reports are available in RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge.